UPI and Digital Payments in India
The Building Blocks: Aadhaar, Jan Dhan and Mobile
UPI stands on India's public digital infrastructure, sometimes called the India Stack, including bank accounts, digital identity and cheap mobile data.
UPI did not appear alone.
Bank accounts
The Jan Dhan Yojana opened crores of basic accounts from 2014.
Identity
Aadhaar allows quick electronic verification when opening accounts.
Mobile and data
Cheap smartphones and low data prices from 2016 put payments on everyone’s phone.
Public rails
NPCI built UPI as a public utility that private apps can use.
Layers
An account, an ID and a phone together make it possible to send money to anyone.
Believing UPI is only an app
It rests on layers of public infrastructure.
Key takeaways
- Jan Dhan gave accounts.
- Aadhaar gave identity.
- Cheap data gave reach.
- NPCI provides shared rails.
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